Staten Island Advance/Monika GraffVito Fossella speaks to reporters in Manhattan.STATEN ISLAND, N.Y. -- Ending a week of high-pitch speculation, Republican Vito Fossella yesterday said he will not be a candidate against Rep. Michael McMahon (D-Staten Island/Brooklyn) this fall.

"I am frankly at a very good place in my life," Fossella said outside the Midtown Manhattan office of Superfund, the financial services firm where he works. "I am where I need to be and where I want to be, most importantly."

Fossella said he had "indicated to" borough GOP chairman John Friscia "that I would not seek election to Congress this year."

Fossella's announcement paves the way for Michael Allegretti or Michael Grimm to get the GOP endorsement when the party's county committee meets tomorrow night in the Labetti Post, Rosebank.

Fossella did leave open the possibility of a run in the future, saying, "I'm not ruling anything out." There has been speculation Fossella will seek the borough presidency in 2013.

But for now, Fossella said, "I've enjoyed the private sector immensely. I've enjoyed the freedom that comes with it."

The Republican executive committee stunned the borough political establishment when it endorsed Fossella for Congress last week.

Photo slideshow: The political career of Vito FossellaBut Fossella today said he would not accept that endorsement. His name will not be put into nomination at tomorrow night's convention, said Friscia.

"I was honored by what they had asked me to consider, and I gave it thoughtful consideration," Fossella told reporters. "I take public service very seriously and take the people who asked me to consider running very seriously."

Said Fossella, "But frankly, for now it's not right for me."

Fossella said he did not ask the executive committee to endorse him last week, and that he was "not prepared" to make an endorsement of his own in the race.

After serving in the House for a decade, Fossella dropped his 2008 re-election bid when a DUI conviction led to revelations that he'd fathered a child during an extramarital affair.

Fossella refused to discuss his family situation or the scandal when speaking to reporters today. He has three children with his wife, Mary Pat.

Former Borough President Guy Molinari, a supporter of Grimm, said Fossella had put the party through a "terrible tragedy" over the last seven days.

"It was a game," said Molinari, a onetime Fossella mentor. "His ego required him to have his name out there and to have one more day in the sun."

Some believe the county committee will back Allegretti, fearing a Grimm endorsement will give Molinari too much sway in the GOP. Molinari last year was part of a group that was thinking about challenging Friscia for leadership of the party.

"It's their right to do that," he said. "We're going to win the primary by a large margin. I'm still playing a key role in getting good people to run. That's not going to change no matter what people say. To hell with them."

McMahon campaign spokeswoman Jennifer Nelson said McMahon "will welcome his opponent into the race, whenever the GOP decides who that is. Congressman McMahon wishes the Fossella family well."

Assemblyman Lou Tobacco (R-South Shore), a close friend of Fossella's, said Fossella had made "a tough decision, one that I think is best for him and his family at this time."

"I care about him and his family, and I want them to be happy," said City Councilman James Oddo (R-Mid-Island/Brooklyn). "If he believes this is what he wants and needs to do, then I'm happy for him. I don't care about the politics of it."

"After the time he took to think about the issue he came to the conclusion....that he is at peace with," said Councilman Vincent Ignizio (R-South Shore). "I take him at his word."

Last week, Oddo and Ignizio had taken a wait-and-see stance when asked if they would support Fossella if he ran.

"I have always had great respect for the work that former Congressman Fossella accomplished when he represented us," said Allegretti. "His leadership served the residents of Staten Island and Brooklyn well."

Grimm said the announcement doesn't change his gameplan.

"We were expecting a primary from day one, and we're still expecting a primary," he said.

Allegretti has been backed by the Brooklyn GOP. Brooklyn Conservatives have endorsed Grimm, effectively giving him that ballot line for the fall.